Fabrice Coffrini | AFP | Getty Images
IATA CEO Alexandre De Juniac on December 8, 2014.
The growing cost of airport infrastructure poses risks to the airline industry’s profitability and also also also growth, the head of the International Air Transport Association said, adding there was an infrastructure crisis almost everywhere inside earth.
“We see the costs rising to where which could be unbearable for the airlines and also also also passengers,” IATA CEO General Alexandre de Juniac told reporters on the sidelines of the Singapore Airshow Aviation Leadership Summit.
He cited the proposed 14 billion pounds ($19.8 billion) cost of a third runway at London’s Heathrow Airport and also also also the development of a fifth terminal at Singapore’s Changi Airport as cases where which was crucial which costs were kept under control.
“We must pay attention to these costs coming from the beginning,” de Juniac said. “We could like to avoid big projects in which we see overruns because the infrastructure is actually fantastic although which is actually very costly.”
Global airline profits are anticipated to rise to a combined $38.4 billion which year, according to IATA forecasts, although net profit margins at 4.7 percent remain low by the standards of various other industries.
“Our exuberance is actually limited,” he said.